Indiana DOR Determines Former Resident’s Retirement Income Not Subject to State Income Tax

The Indiana Department of Revenue (DOR) Feb. 27 posted online a letter ruling determining that Taxpayer’s retirement income wasn’t subject to the state’s individual income tax. Taxpayer, a former Indiana resident, received income from his previous Indiana employer. The employer withheld state and local taxes on the income. Taxpayer sought a refund of the taxes, claiming that the income constituted supplemental retirement pay taxable in his state of residence, Florida. The DOR denied the refund. Taxpayer protested. Upon review, the DOR noted that: 1) Taxpayer received the income pursuant to a retirements benefit plan which met the requirement specified in ...